- CBAM, tighter EU safeguards support stainless steel demand
- Outokumpu expands into high-nickel alloys production
Outokumpu, Europe’s largest stainless steel producer, reported improved financial performance during H1CY’26, supported by healthy stainless steel demand in Europe, favourable trade protection measures, and stronger profitability across its core businesses.
The company reported stainless steel sales of EUR 3.03 billion in H1CY’26, up 1% from EUR 3.01 billion in the corresponding period last year. During Q2CY’26, sales increased 6% y-o-y to EUR 1.58 billion, compared with EUR 1.49 billion in Q2CY’25.
EBITDA surges 77% y-o-y
Outokumpu’s reported EBITDA rose 77% y-o-y to EUR 152 million in H1CY’26 from EUR 86 million a year earlier.
Quarterly EBITDA reached EUR 94 million in Q2CY’26, compared with EUR 39 million in Q1CY’26, supported by stronger performance in its European stainless steel operations, continued resilience in the Americas business, and improved profitability from its ferro chrome segment.
European policies support stainless steel demand
The company attributed stronger European market conditions to the implementation of the Carbon Border Adjustment Mechanism (CBAM) and the revised EU steel safeguard measures, which came into effect on 1 July 2026.
While end-use demand remained mixed across industrial sectors, stainless steel consumption improved in selected applications across Europe. In the United States, demand also remained healthy, supported by increased activity across several industrial segments.
Expansion into high-nickel alloys
Outokumpu announced plans to expand its Advanced Materials business through a phased investment programme in high-nickel alloys at its Avesta facility in Sweden.
The company said the investment is aimed at strengthening its presence in higher-margin specialty alloys, improving long-term profitability, and supporting future growth.
In addition, Outokumpu continues to develop its proprietary low-CO2 ferro chrome and chromium metal technology, with the first patent applications published in July. The company is also expanding its ferro chrome product portfolio to serve higher-value applications, including special steel manufacturing.
Outlook
For Q3CY’26, Outokumpu expects stainless steel deliveries to decline by up to 10% q-o-q, primarily due to seasonal demand weakness in Europe. However, the company expects the overall pricing environment to remain supportive, with the positive impact of realised selling prices expected to outweigh higher raw material costs.
In addition, based on current raw material prices, Outokumpu expects to benefit from inventory and metal derivative gains during the third quarter, providing further support to earnings.
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